💰fees & collateral parameters
summary of fees charged by the handle.fi protocol
Introduction
when using any of the services which handle.fi offers it is important to be aware of all the possible, fees, spreads and liquidation parameters.
CDP vaults & collateral
opening up a vault in order to be extended credit incurs fees initially and on a continual basis. it is also important to keep in mind what the min c-Ratio is in order to avoid liquidation. see the borrow section for more information.
minimum amount of debt you may take out at anytime is 100. this applies when you want to repay part of your debt and have less then 100 remaining.
CDP fees
| action | fee | description |
|---|---|---|
mint (borrow) | nil | added to the minted value of fxTokens. |
burn (repay) | nil | charged from user vault collateral. |
deposit (collateral) | nil | charged from user vault collateral. |
withdraw | nil | charged from user vault collateral. |
liq. fee | variable % | charged from liquidating users vault collateral. *50% to fxKeeper pools, 50% to protocol. |
fxToken redemption | charged from user vault collateral. | |
int. rate | 0.40% | added to users fxToken debt. |
collateral parameters
| collateral | min. C-Ratio | int. rate | liq.fee | liq. c-Ratio |
|---|---|---|---|---|
ETH | 200% | 0.40% | 12.5% | 160% |
stETH | 200% | 0.40% | 12.5% | 160% |
trade
as is common in the industry, fees on leveraged trading are calculated on the total value of the position size (leverage x collateral).
opening a trade
| asset class | min.leverage | max. leverage | min. collateral (USD) | min. position size (USD) |
|---|---|---|---|---|
cryptocurrency | 1.1x | 50x | $5 | $5.50 |
forex | 1.1x | 100x | $5 | $5.50 |
trade fees
| fee type | amount |
|---|---|
position fee | ETH,BTC - 0.10% FX - 0.00% |
spreads |
|
funding fee | asset utilisation * 0.01% / h |
liquidation
all positions which are placed on handle.fi will be liquidated if one of the liquidation triggers are reached. a position will go through the liquidation threshold if either the leverage of the position is above the max. leverage or below the min. collateral.
be aware that your collateral is calculated continuously and is equal to your initial collateral less your losses and fees.
| collateral | max. leverage | min. collateral |
|---|---|---|
cryptocurrency | 100x | $5 |
forex | 110x | $5 |
convert fees
| asset pair | convert fee |
|---|---|
fxToken -fxToken, ETH | 0.00% |
same currency stablecoin - fxToken | 0.04% |
multicurrency stablecoin(non fxToken) | 0.10-0.30% |
to any other ERC20 | 0.30% |
initially all fees and system parameters will be set by handle.fi DAO governance. a move to algorithmically controlled fee and parameter mechanisms is planned to be implemented in future protocol upgrades.
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